Since the beginning of the year, prices of recyclates have decreased by up to 50%, while cheap imports of materials from outside the EU have significantly increased. If urgent measures are not taken to alleviate the pressure on recyclers, there is a risk that Europe will fall short of achieving its legally binding and newly proposed recycling and recycled content targets.
âThe future of the recycling industry is at stake and immediate action in the form of enforcement measures is needed to avoid a shutdown of recycling plants across Europeâ, commented Ton Emans, PRE president. âCeasing recycling activities would have knock-on effects on jobs, the overall economy in Europe and the environment,â he added.
The declining market situation applies to all recycled polymers and is best represented in the PET industry. Due to the lack of a level-playing field, PET imports to the EU have increased by 20% from Q2 2022 to Q2 2023, resulting in low demand for EU rPET. Consequently, these disruptive market dynamics led to an estimated 10% decrease in rPET over the same period.
With the targets set by the Single Use Plastics Directive nearing, the pressure to boost the use of recycled content in PET beverage bottles is high. However, rather than supplying the demand with rPET produced in Europe, this has given rise to non-transparent imports from non-European countries.
Legislation has proved itself as one of the most effective instruments in setting the course for a circular plastic future. However, enforcement measures are a must for its effective implementation. Without this, Europe risks untraceable, unverified imports of plastics participating toward the European recycling targets. Introducing an independent third-party certification system would solve these issues. In parallel, it would help to avoid unverified declarations and promote traceability, particularly for food contact materials, while boosting the transparency on the origin of recycled plastics.
